News in brief

A roundup of the main developments regarding water in the oil & gas industry for October 31-November 30

North America

H2O Midstream obtained a 15-year acreage dedication from Sinclair Oil & Gas Company which will commence when the producer begins producing in the Midland Basin in H1 2021. The water midstream company said that it had also begun expanding its 200-mile pipeline network to accommodate its new client.
Oilfield water services company Eureka Resources announced a new patent covering processing that “analyze the chemical characteristics of oil and gas wastewater of disparate compositions; sort and direct the wastewater through appropriate treatment protocols; and extract lithium, other valuable minerals and fresh water from it.” In a press release the company also said that it estimates that around a quarter of the US’ lithium demand can be met by lithium extracted from Marcellus produced water through its processes.
Due to winter conditions, Canadian producer Husky Energy halted cleanup operations at the site of a 5,660 bbl produced water spill in Alberta’s Rainbow Lake area. The company said that remediation would continue in the spring when the swamp area, or muskeg, thaws.
Permian-focused oilfield water services provider Blue Quail Energy Services acquired water transfer company Fluid Delivery Solutions. The deal enables Blue Quail to enter the Marcellus, Eagle Ford and Haynesville markets.
UK/Hong Kong conglomerate Swire has agreed to purchase US company WesTech Engineering, which provides water and wastewater treatment solutions for multiple industries including oil & gas. The pending acquisition is expected to complement Purestream, another US-based Swire company focused on industrial water treatment.

South America

Colombia’s state-owned Ecopetrol was the only winner in the country’s first bidding round for unconventional projects. The operator will invest a minimum of $76.7 million in exploration activities in the Kalé area of the Middle Magdalena Valley Basin. Rights for three more hydraulic fracturing pilot projects are expected to be awarded in a second bidding round held by Colombia’s National Hydrocarbons Agency, though it is unclear when the auction will take place. Based on the outcome of these four projects, regulators will determine if unconventional development should continue in the country.

Middle East

National oil companies China National Petroleum Corporation (CNPC) and China National Offshore Oil Corporation are considering a purchase of ExxonMobil’s operating rights in Iraq’s West Qurna 1 field, according to Bloomberg. A sale could affect follow-through on a separate mega-project – the $53 billion Southern Iraq Integrated Project (SIIP) – that the supermajor is involved in with CNPC subsidiary PetroChina.